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It is demonstrated how an analysis of airports’ cost structures and the calculation of long-run marginal costs (MCs) of serving passengers and airplanes can be used as a basis for setting airport charges according to the principles of welfare economics. Based on Norwegian data, the MC for an extra passenger (PAX) and extra air traffic movement (ATM) are used to set airport charges under the assumption that the charges should be equal for all airports in the country. When adjusting the estimates to meet revenue restrictions and comparing the estimates to current charges, we observe that PAX should be charged more and ATM less. This finding is in line with recommendations from the International Air Transport Association (IATA). When allowing charges to vary between airports, we demonstrate how a Ramsey pricing approach can be applied to set differentiated PAX and ATM charges, considering both the supply side (the competitive conditions between the airlines operating at the airports) and the demand side (the passengers’ price elasticity of demand).

A substantial part of airports’ revenues relates to charges covering the costs of services supplied by the airport. Charges are imposed on carriers, which in turn pass them or a percentage of them, on to passengers. In the present chapter, special attention is given to regional airports characterized by low traffic volumes, enabling only one or a few carriers to serve each destination. A classic economic model is presented to analyze how the pass-on rate depends on supply and demand characteristics and market structure. Some illustrative examples assuming combinations of common specifications for market characteristics are also presented, showing pass-on rates ranging from 50% to more than 100%. Consequently, market structure and characteristics of carriers and passengers are decisive for how passengers experience changes in airport charges. The differences between the optimal charge from the perspectives of the airport and the welfare of society are specifically addressed. It is demonstrated that knowledge of the pass-on rate in the monopoly cases may be sufficient to infer how the mark-up will be affected by a change in marginal costs. Consequently, the understanding of the pass-on rate is relevant for airport owners and for decision-makers when considering the welfare of passengers and other politically stated goals.

The aim of this study is to examine the role of organizational climate in employees’ creative performance using the public sector as an empirical context. The employees’ creative performance is divided into two entities and studied as two separate effect variables: individual creativity and individual innovative behavior.

A conceptual model is developed and tested in a survey in which employees of a public sector organization participated.

The findings indicate that organizational climate has an important role in employees’ creative performance. The organizational climate showed a positive and significant link to the two creative performance variables included in this study. Moreover, the study revealed that individual creativity mediates the relationship between organizational climate and individual innovative behavior.

This paper is limited to examining the role of organizational climate on two creative performance variables related to individual employees in the public sector. To trigger individual creativity and individual innovative behavior in the public sector, there is a need for managers to build, develop and maintain an organizational climate that supports both employees’ creativity and enthusiasm in implementing those novel and useful ideas.

To the best of the authors’ knowledge, this study is among the first in the public sector to demonstrate the importance of organizational climate for employees’ individual creative performance. The findings of this study adds to our current knowledge and understanding of the value of organizational climate, and its influence on individual creative performance in the public sector.

This paper aims to identify factors that could be related to creative self-efficacy. Specifically, this article examines three different levels of factors as determinants to creative self-efficacy: leader-related, self-related and job-related. After careful consideration, this study selected one determinant to represent each of the three factors. Transformational leadership represented the leader-related factors, learning orientation represented the self-related factors and autonomy represented the job-related factors of creative self-efficacy. This article also aims to examine the effect of creative self-efficacy on what is called innovative activities.

Drawing from theory the study presents a conceptual model of the aforementioned relationships. The data collection is based on a survey with a sample of employees in hospitality organizations.

The findings reveal that the job-related factors (autonomy) were the most influential determinants to creative self-efficacy, followed by the self-related factors (learning orientation) and finally leader-related factors (transformational leadership). Furthermore, creative self-efficacy has a positive effect on innovative activities. Creative self-efficacy was found to have a mediating role between the three determinant variables and the effect variable.

This study is limited to a selection of three different factors as determinants to creative self-efficacy and only one effect variable. Future research should focus on other variables that may be related to creative self-efficacy. This article suggests three main areas related to creative self-efficacy that future research should specifically focus on.

This study stresses the importance for managers to understand that creative self-efficacy is an important motivational factor for behavioural outcomes such as innovative activities. Moreover, it stresses the need for managers to give employees the necessary freedom to act on the basis of self-determination in their job role. Simultaneously, it points to the importance of building a climate and culture that triggers an individual learning orientation, increasing the creative capital in hospitality organizations. In general, this study demonstrates that creative self-efficacy may be a key personal attribute in the workplace where innovation is essential and an important aspect of firm's competitive advantage.

Creative self-efficacy is a relatively new concept. This study contributes to the understanding of this phenomenon.